via bbc.co.uk
Tuesday, 10 April 2012
Gas prices will rise due to increased distribution costs, networks warn
Gas network owners have raised the prospect of escalating energy costs beyond 2020 after predicting that distribution costs will rise by up to 27% by the beginning of the next decade.
Network companies including National Grid have told the energy regulator that the cost of upgrading their facilities will rise by double-digit amounts between 2013 and 2021 – an increase that would ultimately be passed on to consumers if it is waved through.
The estimates led one energy commentator to warn that the energy-related financial squeeze on UK households was coming from "all sides".
Network owners claim that the cost increases will pay for the replacement of steel pipes with plastic tubing, and cover the cost of disruptive street works.
In submissions to the Ofgem watchdog, Northern Gas Networks, which supplies energy to 2.6 million customers in northern England, said costs would increase by 27%. The largest distributor, National Grid, which covers 10m homes including in London, proposed cost increases of 11%, and the second largest, Scotia Gas Networks, which covers Scotland and the south-east, claimed costs would also rise by 11%. Wales and West Utilities put forward the second highest increase, at 22%.
The GMB trade union, which represents around 30,000 energy industry workers, warned that thousands of jobs were at risk due to the increased use of subcontractors in the eight-year plans. "We are in a perfect storm for consumers," the union said. "In an industry that is less safe, with lower standards of service, it is the economics of the madhouse."
The gas networks supply energy to a total of 20m homes in the UK.
Mark Todd, director of the Energyhelpline.com price comparison site, said the submissions underlined the financial toll exacted on households by energy costs. Distribution costs account for around 20% of a household gas bill. According to Todd, the average daily gas bill has more than doubled since 2002, from 91p to £2.06.
Today - #EDF restarts two UK #nuclear plants output
EDF Energy, the UK's biggest atomic power producer, resumed output from two nuclear plants, bringing 1,200 megawatts of potential generation capacity back on to the grid, it said.
EDF said its 600-MW Sizewell B1 reactor returned to service several days ahead of schedule on Sunday after shutting down on March 2.
The company's 620-MW Hartlepool 1 reactor resumed outputting power on Tuesday following a manual shutdown at the beginning of the month, it added.
Government plans new powers for #Ofgem
The UK government is to publish plans to give regulator Ofgem new powers to force energy companies to compensate customers for mis-selling and overcharging.
Currently, energy suppliers voluntarily give cash to consumers following errors – but there is no obligation – while Ofgem has been able to fine companies, but that money has gone to the government.
Energy Secretary Ed Davey said he wants to bring Ofgem in line with other regulators such as Ofcom and the Financial Services Authority, who can ensure compensation goes to customers.
The redress could include pound-for-pound compensation, goodwill payments or public apologies.
“I want to make sure that consumers are protected and that the independent energy regulator has the powers it needs,” he said. “The government has already strengthened Ofgem’s hand by making it harder for energy companies to block licence changes, and introduced tougher rules on the information suppliers have to provide to their customers.
Thursday, 5 April 2012
Renewable Energy Generation On The Increase
As we get ready to publish our latest UK energy market report the DECC released last year’s energy statistics. Even though figures did not match the predicted targets Renewable energy generation expanded significantly and carbon emissions fell in 2011.
Renewable energy generation registered an increase of 35% in comparison to the previous year (2010). Back then renewables accounted for 6.8% of all electricity supplied in the UK. Last year it was responsible for 9,5%, only 0,5% short of the illusive 10% mark that had been predicted.
Overall low carbon generation rose about 4% accounting for 28.4% of all electricity generation in 2011. Offshore wind and hydroelectric generation registered the biggest increases followed by onshore wind and thermal renewables (including co-firing).
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